ENA Price Soars 145% in a Month, Should you Buy Ethena for August?

Ethena today is one of the hottest altcoins you can buy today. As it has registered a stunning 14% gain in the past 24 hours, while keeping its monthly gain at 145.61%. Priced at $0.6445, ENA’s market cap has grown to $4.09B, ranking it among the top rising DeFi tokens. 

Talking about drivers, the major one behind this rally is the growth of Ethena’s native stablecoin, USDe, whose circulating supply has now reached $7.54 billion. This has come alongside a 50% surge in Ethena’s TVL in July alone. The impact of StablecoinX’s $260M buyback initiated on July 21 is still being felt. As it continues to remove ~8% of the supply from circulation by August end. Curious about ENA price? Stick until the very end of the analysis for potential price targets.

Active Addresses Give Mixed Signals?

The chart by Santiment, highlights that the active addresses on the ENA network experienced a noticeable drop after a mid-day spike. I am firm that this pattern may reflect profit-taking by traders after the recent rally or temporary consolidation. While network activity peaked sharply around midday, it gradually tapered off through the evening and hit a low early next morning.

Further indicating some cooling off in user participation. However, a rebound was visible toward the latest time frame, suggesting that the pullback may be short-lived as speculation by marketers makes a comeback.

ENA Price Analysis:

ENA price, while I am framing this analysis, is changing hands at $0.6445, just below a resistance zone around $0.7046. It has firmly held support at $0.6145, with stronger downside protection at $0.5638 and $0.4764. The RSI stands at 60.96, approaching overbought territory, hinting at potential short-term consolidation. That being said, the Bollinger Bands are widening, hinting at rising volatility and a possible breakout.

Should bulls reclaim the $0.7046 resistance, the next upside target lies at $0.8551. Conversely, a drop below $0.6145 could open a retest of lower supports. With momentum on its side and strong on-chain support, ENA’s bullish structure remains intact.

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